INDUSTRY SPIN-OFF BENAFIT LOCALS

 PETROCHEMICAL industry is expected to create huge spin-offs to local entrepreneurs in term of providing various services like maintenance and material supplies.

 According to the Managing Director of BASF Petronas Chemical Sdn Bhd (BPC), Dr Bernhard  Nick, his company has budgeted for RM65 million for maintenance work in 2003. 

 "In addition, BPC also needs large supply of steels and plastic drum to store chemicals. Some 100,000 steel drums are needed for the storage our chemical products when our first complex started operation," said Dr Bernhard. 

 He said the spin-off effect will also provide opportunities for local SMIs with the company commitment to developed RM 380 million butanediol complex. BPC has awarded the construction of the multimillion complex to Kvaerner  Petrominco Engineering Sdn Bhd  and Kvaener E & C UK Ltd. 

 PBC has signed the engineering, procurement and construction (EPC) agreement to initiate the groundwork for the construction over a  period of two years. 

 The butanediol complex is within the BASF Petronas integrated petrochemical complex in a 150-hectare site and will be constructed over a period of two years.

 The complex, which is situated some 8-km from Kuantan Port, will be fully operational by 2002.

 When complete, it will have an annual production capacity of 100,000 tonnes of butane-based chemical applications like butanediol, tetrahydro furane and G-butyrolactone that will eventually be used in the manufacture of end consumer goods such as plastic, sport clothing and personal care products. 

 BPC plans to export its products to markets in Southeast Asia, Australia, Japan, South Korea, China, Taiwan, India and Pakistan. 

 'The complex is part of BPC's threephased investment programme to develop a world-scale chemical complex. The size of the investment reflect our serious long -term commitment to built the Malaysian site into one of the largest chemical providers in the Asia region," said Nick. 

 "When the US$900 million Gebebg IPC is Completed, we would have fully realised the BASF concept of "verbund". This means the total plant integration would be achieved, impacting on overall production efficiencies for customers," stressed Dr Nick.